Federal court ruling good news for Durri

The federal court has disqualified the former director of a Kempsey Aboriginal medical service from holding office for 15 years.

Gerald Hoskins has also been fined $100,000 and must pay court costs.

Mr Hoskins paid himself over $200,000 in bonuses while he was head of the Durri Medical Service.

The Indigenous Corporations Registrar Anthony Beven said the penalties are appropriate and send a strong message about the mishandling of public money.

"It's a very important decision and a lot of work has gone into this matter," he said.

"But most importantly it also sends the message that if directors or senior officers of Aboriginal corporations do the wrong thing then my office will take action to ensure that the corporations are protected and their funds are protected."

Registrar Beven says the federal court made a good decision.

"This is a very essential service, it's a medical service delivering very important health services to aboriginal people on the mid north coast," he said.

"Any funds that are not used appropriately is less money that goes to delivering health services to Aboriginal people and that's just not something I'm prepared to stand for."